§ MR. P. A. M'HUGHI beg to ask the Secretary to the Treasury whether he is aware that the Treasury refused some years ago to accept repayment at par of outstanding loans for sanitary works contracted by urban authorities in Ireland; will the Treasury consider the advisability of accepting repayment of such loans at par where the urban authorities are in a position to reduce their local taxes by borrowing in the cheapest market and repaying the Treasury at par.
§ MR. AUSTEN CHAMBERLAINLocal authorities in any part of the United Kingdom who wish to make repayment in advance of loans, out of the Local Loans Fund, have to comply with certain conditions prescribed by the Treasury in 1895. One condition requires that the amount to be repaid in respect of each £100 of the outstanding loan shall be the value of £100 of Local Loans Stock at current price. The maintenance of this condition is necessary for the solvency of the Local Loans Fund when the stock stands at a premium. At the present price of Local Loans Stock it cannot be a serious obstacle to the repayment of loans.